Home improvements favoured over moving

59% of homeowners think that making improvements to their current home is a better option than trying to move up the housing ladder.

31% of 2,500 homeowners surveyed by comparethemarket.com cited recent house price inflation as the main course not to move from their homes.

1 in 10 also view stamp duty as major reason for putting off moving, with 31% suggesting they would likely move properties if there was a significant cut in stamp duty.

New stamp duty rates came into force on 1 April 2016 with individuals who purchase a second home or buy-to-let investments having to pay a 3% surcharge on additional property over £40,000.

Along with other moving costs such as legal and estate agent fees and removals, more people are opting to use their money to make refurbishments to increase the value of their current property.

Investing in an extra bedroom can provided an average added value of £18,826 while adding a loft conversion can add £15,189 to a property.

Gemma Sonfield, head of home insurance at comparethemarket.com, said:

“The huge growth in house prices wince 2009, which has seen the average price go from just over £150,000 in June 2009 to nearly £214,000 in June 2016, makes it difficult for many people to make the move they’d ideally want.

“If improvement work is done on the home, you must then inform your insurer of the changes made as that could provide insurers a reason to reject your claim.